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Marcus Tedric
Gallente
Tedric Enterprises
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Posted - 2007.06.11 09:26:00 -
[1]
For about 18mths I've been offering and meeting a 10% return on investments for friends and compatriots.
It's been small scale and I always wondered whether I'd be able to keep it up with increasing wallet - and it is now becoming harder - a regular return of more than 10% for me is getting more difficult - the bigger ventures just don't seem to offer the same rates of return. Doing mini-business cases just doesn't seem to show enough ROI.
So, I was curious - what is considered a good range of return on investment?
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Jimmae
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Posted - 2007.06.11 11:23:00 -
[2]
I am guaranteeing 10% minimum on currently about 21bil.
However I usaly achieve higher ROIs than just 10%.
5% of the total profit goes to me. Then I check the remaining profit. If it equals more than 20% I pay out half of that and reinvest the other half increasing share value and expanding my business. If not I pay out 10% and reinvest the rest.
If you take both, share value increase and dividends, into account I have had months with as high ROIs as 28%
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YunFu Yan
Yan Enterprises
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Posted - 2007.06.11 11:24:00 -
[3]
Bah, hate posting from work. Always forget to select the right char.
Jimmae = me
Yan Enterprises - We mean business. |
Marodi Julita
Sublime Captial Investments
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Posted - 2007.06.11 11:50:00 -
[4]
5% from any corp is generally average, although smaller corps might bring in more.
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Hexxx
Minmatar
ironwood ink
The Sundering
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Posted - 2007.06.11 16:55:00 -
[5]
Edited by: Hexxx on 11/06/2007 16:59:57
Generally speaking, public stock may debut during an IPO phase at a price which allows initial investors to reap some rather nice returns (10% or higher). However, historically we've seen the market price (stock pricing via the two different exchanges) rise untill the average monthly dividends represent a profit of 4% to 5% compared to the adjusted market price.
In other words, a 5% profit is generally a profit rate that most people will accept in an investment.
Hexxx LLP - Business Consulting Services - IPO's, Business Plans, Share/Stock Pricing, and general Consulting.
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Caleb Ayrania
Gallente
TarNec
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Posted - 2007.06.13 03:52:00 -
[6]
Short question, when you guys talk ROI, on what timeframe are you talking?
ROI per week , year or day?
Investing the isk in someting and getting the returns by sales are rather different from investment type to investment type, so I have a hard time making sense of this without a timeframe?
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Professor Bunsen
Optech Scientific
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Posted - 2007.06.13 07:20:00 -
[7]
I think the timeframe for ROI in Eve time (a bit like dog years!) is largely taken as per month.
Optech Scientific Data Feed |
Marcus Tedric
Gallente
Tedric Enterprises
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Posted - 2007.06.13 09:26:00 -
[8]
 Originally by: Caleb Ayrania
Short question, when you guys talk ROI, on what timeframe are you talking?
ROI per week , year or day?
Investing the isk in someting and getting the returns by sales are rather different from investment type to investment type, so I have a hard time making sense of this without a timeframe?
For me, I look at ROI for the business case when I'm looking at doing something new and that more a timeframe than a particular period.
But the Investment scheme I have been running is more like a pure savings account. For each 100m invested and left in the account, then 10m has been paid out each and every month.
Now, with that as my baseline, then any new venture has to make 10% equivalent return to be worthwhile and preferably more.
Take, for example, the decision to buy a T2 BPO. If I bought one for 6b then it would have to turn greater than 600m per month profit to be worth doing. It is this sort of environment where I've come to realise that perhaps 10% is too high a target to set and perhaps I should consider lowering that target.
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Hexxx
Minmatar
ironwood ink
The Sundering
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Posted - 2007.06.13 13:26:00 -
[9]
5% would be a nice comfortable steady return.
Yeah, it would take about 20 months to make all your money back and start earning pure profits and that's 20 months of someone playing without taking a break. On the other hand, you could just do a Bond issue with 5% interest paid per month for 6 months and then pay back the principal to the investors. We call this a Bond maturity date.
Hexxx LLP - Business Consulting Services - IPO's, Business Plans, Share/Stock Pricing, and general Consulting.
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Caleb Ayrania
Gallente
TarNec
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Posted - 2007.06.13 19:03:00 -
[10]
Ok so usually I am to understand that we say interests are per month? Thats what I got from the replies at least.
Considering this whole topic when asking those sweet friendly investors ofering to lend you their money, it is rather important how fast you can shift that cash around or invest it in something like a nice BPO.
I am still a little amused at the fact that many tend to use stocks more as bonds than actual stocks.
With stocks you OWN all the activities made on the stackvalue, and not just the right to the the returned interests. Reading on the forums it seems different people use the stocks features for both bonds and stocks.. Quite ingenious actually that the players create more systems from the same mechanic. I still believe we could benefit from even more ccp aided features to easier distinguish these things and give us more options. Like dividing the different types of investments, Bonds, open traded stocks, closed traded stocks, stock sizes and splitting stocks etc. Also the different markets should be open to the different financial products. You should have a nonlocality trademarket, where things dont drop in a hangar, or rather all in the same hangar(portfolio). Would make a nice feature for players to work on more stock related content. Unless ccp want to eventually create our stockmarkets for us.. We need better features to create financial products.
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